GameFi: Play-To-Earn Model Becoming Viable

The many potentials of the blockchain are beginning to materialize as the P2E model rakes in a huge deal of attention. Axie Infinity and Splinterlands continue to climb in popularity as yet another aspect of the blockchain is discovered and utilized in order to enable unique in-game assets ownership (NFTs), monetization of said assets (DeFi), with the final layer of gamification. All of this weaves into the term: GameFi

How it works

Despite the wide selection of games that have buoyed themselves, whether old or new, all of them work under the same overlapping principles.

The mechanics are quite simple: Take, for example, Axie Infinity. In this game, ownership of unique in-game creatures is done via NFTs, and the blockchain allows for exchanging those creatures between players in the internal market. The factors that vary each creature's worth and supply in this ecosystem is hard-coded, giving each creature their own unique stats, and therefore a base for their inherent value. Splinterlands is no different when it comes to the gears in the backend as well.

This is, without a doubt, the very first boom the P2E has ever seen all thanks to the blockchain. Already people from third-world countries are making sizable income in their local currencies just by playing a video game from their home. Even if the massive interest and growth dies down in this sector, the core users are going to be in the league of countries outside the U.S. As Taskmaster predicted, GameFi could very well grow into an industry of its own in a decade.

In the end, this is yet another testament for the blockchain technology, for the people and against the conglomerates. We are beginning to transition into an age where Peer-to-peer technology becomes not only beneficial as a way to torrent files in a distributed manner, or to validate transaction amongst each other overlied by the blockchain, but it will become a lucrative venture for performing such a trivial activity. This is the age of tokenization, and I believe what's in store for us in the next halving event is a boom in HIVE as demand for tokenized social media becomes prominent.

Hitting HIVE's Scalability limits

For long, the landscape of GameFi was primarily spearheaded by Hive's flagship game Splinterlands. By now, it needs no introduction. Of the days past, we've seen parabolic rise in the HIVE blockchain numbers on several fronts. The custom JSON transactions have went on an all-time high alongside Splinterlands.

All this newfound demand is seriously testing the boundaries of hive and bolstering the scalability issues it has, this is especially so considering how the system was never given given a proper turing test. However, it might not be all that bad for HIVE, at least, in terms of price.

What is interesting to note here is that Resource Credits are becoming a hot commodity right now. With increasing demand, and with little resource credits to perform transactions on the blockchain, especially on Splinterlands, people all around are buying HIVE in order to power up their stakes to speed up refueling Resource Credits.

Resource credits, upon hitting a bigger scaling issue, become valuable, and the only way to obtain those credits is through buying hive and powering up. Think about it, this could send price of hive upwards. Essentially, scaling issues on HIVE coupled with heavy demand pushes people to purchase it.

Conclusion

The next big thing in the market, since the boom of DeFi, seems to come from the massive interest in tapping into the potential of the P2E model, which the Hive and Ethereum have both greatly facilitated and supercharged the adoption of.

Hive is very well poised to go on a tear as well, so long as the blockchain itself is able to foot the many transactions going through it. If not, it is still a win/win situation as more people pile up on purchasing and powering up HIVE.

Generally speaking, the markets have gained a huge boost of confidence as of late, with more money being flung about, let's hope this continues for the rest of the year.

Posted Using LeoFinance ^Beta